You have $45,050 to invest. You want to purchase shares of Company A at $10.25, Company B at $15.10, and Company F at $9.05. How many shares of each company should you purchase so that your portfolio consists of 30 percent Company A, 50 percent Company B, and 20 percent Company F? Report only whole stock shares.
A) Company A = 30 shares, Company B = 50 shares, Company F = 20 shares
B) Company A = 44 shares, Company B = 30 shares, Company F = 50 shares
C) Company A = 308 shares, Company B = 755 shares, Company F = 181 shares
D) Company A = 1,318 shares, Company B = 1,491 shares, Company F = 995 shares

Question

Quizplus · Accepted Answer

To allocate the investment according to the specified percentages, calculate the amount to invest in each company: Company A = 30% of $45,050 = $13,515; Company B = 50% of $45,050 = $22,525; Company F = 20% of $45,050 = $9,010. Then, divide each amount by the respective share price to find the number of shares: Company A = $13,515 / $10.25 ≈ 1,318 shares; Company B = $22,525 / $15.10 ≈ 1,491 shares; Company F = $9,010 / $9.05 ≈ 995 shares.

You Have $45,050 to Invest